Re: Should I use extra money to pay down credit card or student loan

If you plan on paying the CC debt before the end of the promo date, then do the student loans based on interest rates. If the rates are the same, pay the smallest balance first as that will give more extra cash when paid off.

If you don't plan on having the CC debt paid normally in time, pay it first. Because the interest will probably be deferred and therefore it may be tough to pay off when the bill drops 1 year-18 months worth of interest on you. Let alone, CC interest is about 7 times as much as your loans as they are.

Re: Should I use extra money to pay down credit card or student loan

The CC interest is not being deferred unless it was on a Best Buy or other type retail card.

I would say on the 0% interest debt, divide into equal payments to pay it off as the 0% expires.

Also, do you use a budget? If not, this would be a great time to start. Right now while your financial house is in good order start by using a budget. Talke a look at YNAB (You Need a Budget) and see what you think.

Re: Should I use extra money to pay down credit card or student loan

snu wrote:

Edit: Also, don't know if you can do this with private student loans, but is it possible to reconsolidate them and get a fixed interest rate?

Yes. I've done this several times, both variable and fixed. Unfortunately rates are rising rather quickly - last year would have been the most opportune time for a fixed rate. Also, the OP only has a little over $5k in student loans - I am not aware of any banks that will refinance such a small amount (there are usually $15-20k minimums) and it's likely not worth the trouble.

Re: Should I use extra money to pay down credit card or student loan

Thanks everyone for the replies.

Someone asked the credit card utilization is at 23%. I don't use the card at all. I got it to pay for expenses related to my mother's death and that was it. The utilization keeps going down because they keep increasing my available credit, even though I'm not using the thing!

I have two other credit cards but don't carry balances on those cards.

Right now I'm in a position to pay off the credit card and actually the student loans BUT that would leave me cash low and I don't have a safety net (unmarried. parents deceased, etc), so $150 extra is all I'm comfortable spending each month.

I was fine going as is, but the interest rate is starting to creep up on the student loans and I'm scared like crazy that my student loans will be sold to some scary company like Navient before Septermber 2018 (their absolute payoff date) AND there is the issue of the car.

My car is pretty old (almost 15), I will wear it into the ground but I'm concerned if I will be approved for another one because my income is low and I'll have these three installment loans. My thinking was if I paid them off then my credit union might be more lenient.

Re: Should I use extra money to pay down credit card or student loan

smile90000 wrote:

Thanks everyone for the replies.

Someone asked the credit card utilization is at 23%. I don't use the card at all. I got it to pay for expenses related to my mother's death and that was it. The utilization keeps going down because they keep increasing my available credit, even though I'm not using the thing!

I have two other credit cards but don't carry balances on those cards.

Right now I'm in a position to pay off the credit card and actually the student loans BUT that would leave me cash low and I don't have a safety net (unmarried. parents deceased, etc), so $150 extra is all I'm comfortable spending each month.

I was fine going as is, but the interest rate is starting to creep up on the student loans and I'm scared like crazy that my student loans will be sold to some scary company like Navient before Septermber 2018 (their absolute payoff date) AND there is the issue of the car.

My car is pretty old (almost 15), I will wear it into the ground but I'm concerned if I will be approved for another one because my income is low and I'll have these three installment loans. My thinking was if I paid them off then my credit union might be more lenient.

Is my on this thinking incorrect?

If you want to get an auto loan and want to maximize your scores in order to get the lowest rate, you should:

1. make sure 2 of the credit cards report a zero balance, while the 3rd reports a small balance

Re: Should I use extra money to pay down credit card or student loan

I agree with others posting to pay off the ones with interest pending you have a 6-8 month emergency fund already in case something unexpected happens. If you already have this money set aside then pay off the ones with interest. Dont touch your emergency fund.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.